Calculate effective annual interest rate (EAR) for the following investments.

1. A bank CD that pays 8.22 percent compounded quarterly. Calculate effective annual interest rate (EAR)?(Round answer to 2 decimal places, e.g. 15.25%.)

Effective annual rate-? %

2. A bank CD that pays 8.22 percent compounded monthly. Calculate effective annual interest rate (EAR)?(Round answer to 2 decimal places, e.g. 15.25%.)

Effective annual rate-? %

3. A bank CD that pays 8.42 percent compounded annually. Calculate effective annual interest rate (EAR)?(Round answer to 2 decimal places, e.g. 15.25%.)

Effective annual rate -?%

4. A bank CD that pays 8.22 percent compounded semi-annually. Calculate effective annual interest rate (EAR)?(Round answer to 2 decimal places, e.g. 15.25%.)

Effective annual rate -?%

5. A bank CD that pays 7.97 percent compounded daily (on a 365-day basis). Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.)

Effective annual rate -?%

Which of the above investments has the highest effective annual interest rate (EAR)?

The bank CD that pays 8.22 percent compounded semiannually 8.22 percent compounded quarterly 8.42 percent compounded annually 7.97 percent compounded daily 8.22 percent compounded monthlyhas the highest yield.